Top 10 performing stocks

The top 10 performing stocks last week were Learn Africa Plc, University Press Plc, Ashaka Cement Plc, Guinness Nigeria Plc, Costain (West Africa) Plc and International Energy Insurance Plc.

Others were Cutix Plc, Total Nigeria Plc, Sterling Bank Plc and UPDC Real Estate Investment Trust.

Learn Africa gained 19.87 percent or N0.31 to lead the top gainers chart. It opened the week at N1.57 and closed at N1.87 per share. Two years ago, the two majority shareholders – Pearson Education Limited and Longman Group (Overseas Holdings) Limited -divested their combined 51 percent holdings in Learn Africa Plc. (formally Longman Nigeria Plc by way of gift to the minority shareholders. According to the deal, which was executed on a pro-rata basis, the donees were not

required to take any action to be entitled to receive the shares. However, only shareholders of the company other than the Donors as of the close of business on March 8, 2012 benefited from the gift.

The divestment was undertaken to enable the majority shareholders to pursue their strategic focus of operating a broad education business model rather than a narrow business model focused exclusively on textbooks, which is what Learn Africa is presently doing. There are indications that the company will end the year on a negative note as the nine months unaudited financial statement recently released is a continuation of  it’s  loss position in 2012. All basic measurement parameters closed in red. Revenue fell  by 42.89 percent to N1.044 billion from N1.803 billion in December, 2012.

Though the cost of sales improved slightly, the company  ended the year with a pretax loss of  N132.397 million from profit position of N8.008 million in 2012, representing 1,753 percent decrease. Similarly, it recorded after-tax loss of N132.397 million as against after-tax profit of N5.446 million in 2012, representing a huge 2,531.28 percent decline. Furthermore, the company’s Total non-current assets, total current assets, including total current liabilities and total non-current liabilities all closed in deficit.

Another printing/publishing company, University Press, came second on the top gainers chart  with 19.76 percent or N0.66 price appreciation to close at N4.00 from N3.34 per share. Of the four printing press companies listed on the NSE, University Press is still the most highly priced, while Studio Press Plc trails behind. Unlike Learn Africa, UPL has a more stable financial background.

However,  cost of sales, administrative expenses and distribution expenses are  impacting  negatively on it’s  results. Available financial statement of the company for the third quarter ended December 31, 2013, showed 14.06 percent increase in turnover to N2.109 billion as against N1.849 billion in comparable period of 2012. Gross profit grew to N1.042 billion from N858.186 million in 2012, while pre-tax  profit  and after-tax profit  rose to N409.228 million and N285.559 million from N387.775 million and N270.581 million respectively. The basic earnings per share also rose to 66.19 kobo from 62.7kobo in 2012, representing 5.57 percent increase.

Ashaka Cement appreciated by 18.79 percent or N2.63 to close at N16.63 from N14.00 per share. Despite the controversy  over the cause of building collapse in Nigeria, with the  blame laid  cement manufacturers, who produce  32.5 cement grades,  which is reportedly used for construction of culverts only, the company solidly has thrown its weight behind the production of the cement grade.

It argued against the planned ban of the cement grade by the federal government, the company said it should rather be produced along side 42.5 grade. The company also plans N100 billion fresh investments to expand its operations. The amount, according to the company, would help to increase  it’s plant production capacity to 2.5 million metric tones. It posted N21.695 billion in revenue for the period ended March, 2013, while it’s after-tax profit  stood at N2.824 billion as against N3.125 billion in the same period of 2012.

Guinness Nigeria Plc went up by 18.55 percent or N30.40,  closing at N194.25 from N163.85 per share. Guinness has been occasionally  touted for violating advertising laws.

Costain advanced by 16.54 percent or N0.21, closing at  N1.48 from N1.27; International Energy Insurance went up by 14.29 percent or N0.08,  closing at N0.64 from N0.56; Cutix added 13.74 percent or N0.25, closing  at N2.07 from N1.82; Total Nigeria advanced by 13.04 percent or N19.95, closing at N172.95 from N153.00 per share; Sterling Bank followed with 12.61 percent or N0.28 price appreciation, closing at 2.50 from N2.22, UPDC Real Estate Investment Trust rose by 10.20 percent or N1.02 to close at N11.02 from N10.00 per share.

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